KBank in Ho Chi Minh City increases capital to over $285 million
KBank in Ho Chi Minh City increases capital to over $285 million
The KBank branch in Ho Chi Minh City has announced that it has received approval from the State Bank of Vietnam (SBV) to increase its capital by more than 2.5 times, from $80 million to $285 million.
As of March 31, 2023, there were 52 foreign bank branches operating in Vietnam. Following the approval of their capital increase request by the SBV, KBank's Ho Chi Minh City branch is now poised to join the ranks of the top three foreign bank branches with the highest charter capital in the country.
As one of the top three largest banks in Thailand with total assets worth $123 billion at the end of 2022, KBank is now setting its sights on conquering the Vietnamese market. After only a year of operation, the bank has announced this significant capital injection to enhance its transaction ecosystem and bolster its competitiveness, with the ultimate goal of becoming a digital leader in the region. The bank has set an ambitious target to rank among the top 20 banks in Vietnam in terms of total assets by 2027.
Chat Luangarpa, KBank Executive Vice President, said, "KBank is proud to announce the decision to increase its charter capital by 2.5 times as a testament to our unwavering commitment to drive Vietnam's economic growth. This strategic decision will empower us to better assist business and retail customers, particularly in the midst of a volatile economic climate where the need for capital solutions has never been greater."
"This infusion of funding will provide the necessary impetus for our cutting-edge IT platform in Vietnam, which has been a key enabler in driving our digital leadership," Luangarpa added.
Building on its digital banking leadership, KBank remains committed to providing accessible and convenient digital banking services for Vietnamese consumers, anytime, anywhere.
Capital increase has remained the paramount focus of banks operating in Vietnam in recent years, given the escalating industry requirements concerning operational safety. A plentiful capital reserve not only substantiates a bank's financial capabilities and enables the realisation of medium and long-term business goals, but it also ensures compliance with the capital adequacy ratio stipulated by regulatory bodies, thereby supporting the achievement of annual growth targets.
Since entering the Vietnamese market, KBank has identified household businesses along with small and medium enterprises as significant contributors to the economy, accounting for over 97 per cent of the country's business structure.
However, these entities often face difficulties in meeting the stringent collateral requirements of domestic banks. By increasing its charter capital, KBank intends to conduct extensive research and expand its services to this target group, providing opportunities for them to expand their businesses on a larger scale in the future.
As part of its growth strategy, KBank is committed to advancing its digital payment and loan products in Vietnam, aligned with the government's push for cashless transactions. With its proven expertise in digital banking, KBank's 'K PLUS Vietnam' application offers Vietnamese customers a range of user-friendly loan products, including the 'KBank Biz Loan'.
KBank aims to have outstanding loans of $960 million in 2023, streamlining the capital rotation process for businesses and accelerating economic growth in the country.
